- Euro is attempting to trade higher against the Japanese Yen, and may test the 123.50 level.
- There is a bearish trend line formed on the hourly chart of the EURJPY pair, which may be tested.
- Euro Zone Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted an increase from 51.0 to 51.2 in Feb 2016.
- German Manufacturing Purchasing Managers Index (PMI) also rose from 50.2 to 50.5.
The Euro after trading towards the 122.00 support area against the Japanese Yen found support and started to move higher. The EURJPY pair settled above the 23.6% Fib retracement level of the last drop from the 125.01 high to 122.06 low.
Any further gains may take the pair towards a bearish trend line formed on the hourly chart of the EURJPY pair, which is around the 100 simple moving average.
On the downside, the 123.00 support area holds the key, followed by the 122.80 level.
Euro Area Manufacturing PMI
Earlier today, there were a few important releases in the Euro Zone, including the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was reported by the Markit Economics. The forecast was lined up for no change in the PMI from 51.0. However, the outcome was above the forecast, as the Euro Zone Manufacturing Purchasing Managers Index (PMI) rose to 51.2.
The report highlighted that “51.2 in February, from 52.3 in January, the final seasonally adjusted Eurozone Manufacturing PMI® fell to a 12-month low despite posting slightly above its earlier flash estimate of 51.0. The PMI has remained above the neutral 50.0 mark for 32 successive months.”
Overall, there is a chance of EURJPY heading higher towards the 123.50 level where it may face sellers.